Shiba Inu Shows 85.81% Burn Rate Surge, Indicating Accumulation

Shiba Inu (SHIB) is exhibiting strong indicators of accumulation following an extended period of decline. The meme token is currently trading within a narrow consolidation range, presenting a favorable setup for a potential bullish movement. This market position is supported by significant on-chain data and technical analysis.

According to data from CryptoQuant, SHIB transactions increased from 6,200 to 7,510, yet the price remained relatively unchanged. This divergence, where transaction activity rises while the price stays flat, typically suggests either accumulation or distribution. In SHIB’s case, the net exchange outflow on May 20 was a substantial -111.8 billion tokens, strongly indicating accumulation. Large-scale withdrawals of tokens to self-custody or cold wallets are often seen as a long-term bullish signal, suggesting investors are preparing for a future rally rather than quickly offloading their SHIB tokens.

Additionally, SHIB’s burn rate surged by 85.81%, with 15.3 million SHIB tokens burned in the last 24 hours. This reduction in token supply further tightens the overall circulation, which could potentially drive up the value of the remaining tokens.

The technical chart for SHIB/USDT on the daily timeframe reveals critical signals. The Relative Strength Index (RSI) currently stands at 51.51, just above the neutral 50 line, placing SHIB in a non-overbought, non-oversold zone. The RSI previously touched 60, indicating bullish momentum before retracing. A move back above 60 could signal the next leg up. Meanwhile, the Moving Average Convergence Divergence (MACD) lines are converging near the zero line, with a slight bullish crossover forming. The MACD histogram shows weakening negative momentum, suggesting that bearish pressure is fading.

Based on the Fibonacci setup anchored on the recent swing low ($0.00001027) to swing high ($0.00001606), several key levels emerge. Immediate support is at 0.382 Fib ($0.00001357), 0.5 Fib ($0.00001417), and 0.618 Fib ($0.00001478). These zones are ideal for accumulation if SHIB revisits them. Potential upside targets include 1.618 Fib at $0.00001841, 2.618 Fib at $0.00002220, 3.618 Fib at $0.00002599, and 4.236 Fib at $0.00002834.

In summary, SHIB’s recent on-chain activity and technical indicators suggest a strong potential for a breakout. The significant exchange outflow and increased burn rate indicate that long-term holders are accumulating the token, while technical analysis points to a fading bearish pressure and potential for upward movement. Investors and traders should closely monitor these developments as SHIB navigates its current consolidation phase.